Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Uxin Limited (NasdaqGS: UXIN) filed a class action complaint on February 11, 2019, against the company for alleged violations of the Securities Act of 1933 pursuant to the company’s June 27, 2018 initial public offering (“IPO”). Uxin is a used car e-commerce platform in China.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/uxin-limited-feb-19-2/
Uxin Accused of Inflating its IPO Price
According to the complaint, Uxin held its IPO in June 2018, and generated over $205 million in proceeds based on misleading offering documents. In particular, Uxin failed to disclose that the company would stop providing complementary services to its customers and instead connect consumers to dealers who would provide such services. As a result, Uxin’s auction business, which sells used cars to dealers, would be negatively impacted. Just two months after the IPO, in August 2018, Uxin announced a strategic change in its approach in serving customers with car-selling needs. Shortly thereafter, in November 2018, Uxin reported that its transaction volume had decreased by 8.5%. Following this news, Uxin’s share price closed at $4.50, approximately 50% of the IPO price of $9.00 per share. The stock now trades even lower at just $3.29 per share.
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Uxin Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, [email protected], or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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